Strategic Customer Care An Evolutionary

How to successfully apply the principles of customer care in any companyMost organizations today recognize the importance of improving customer care-the need to go beyond traditional customer service and truly manage customers as assets-but only about 6% apply its principles effectively. This book fully explains the three stages in the evolution of customer care. Readers will be guided through the process of acquiring customers, retaining them through segmentation and management of the relationship, and targeting their most significant marketing efforts to the most profitable segments. Shows companies how to identify where they are in their own evolutionary process Outlines successes and failures of companies, including Sears, CIBC, AT&T/Matrixx, Kodak, FedEx, and more

Stanley A. Brown is the Leader of the Pricewaterhouse Coopers International Centre of Excellence in Customer Care. Part of the Market and Customer Management Practice of Pricewaterhouse Coopers, the Centre works with organizations to enhance revenue and improve profitability through a focus on processes that touch the customer. He is a frequent speaker on the topic of customer care, and writes regularly for newsletters and magazines, including Sales and Marketing Management and ICSA News. He is the author of four previous books: Practices of Leaders in Customer Support (Wiley, 1997), What Customers Value Most: How to Achieve Business Transformation by Focusing on Processes That Touch Your Customers (Wiley, 1995), Total Quality Service, and Creating the Service Culture.

Foreword

vi

Preface

viii

Acknowledements

xiv

PART ONE: THE SKILLS NEEDED BEFORE YOU START: THE FIVE FOUNDATION PILLARS THAT DEFINE YOUR CURRENT AND FUTURE STAGE OF EVOLUTION

3

(148)

The Stages in the Evolution of Customer Care

7

(20)

Building the Foundation: Where Are You Right Now?

7

(4)

The Stages of Evolution

11

(9)

What Stage Are You In?

20

(5)

Lessons Learned

25

(2)

Who Are Your Customers? The Need for Customer Profiles

27

(18)

Building the Foundation: Who Are My Customers and What Are Their Needs?

28

(3)

In Which Supplier Category Do You Fall?

31

(2)

The Significance of the Customer Profile: Why It DefinesYour Stage

33

(5)

Information Gathering Best Practices

38

(5)

Lessons Learned

43

(2)

Segmentation: Some Customers Are More Important Than Others

45

(26)

Building the Foundation: Not All Customers Are Created Equal

48

(2)

The Importance of Customer Segmentation

50

(14)

Getting Started: A Step-by-Step Guide to Segmentation Best Practices

64

(5)

Lessons Learned

69

(2)

Focusing on Customer Needs Through the Voice of the Customer

71

(30)

Building the Foundation: The Voice of the Customer (VOC) Interview and Summary

75

(1)

Best Practices in Determining the VOC

75

(14)

Using Your Data

89

(10)

Lessons Learned

99

(2)

The Importance of Technology: A Key Enabler

101

(26)

Building the Foundation: Choosing Your Technology Carefully

102

(1)

The Role of Technology:Matching It to Your Stage of Evolution

103

(6)

A Step-by-Step Approach to Technology Investments

109

(2)

Tools for Success

111

(14)

Lessons Learned

125

(2)

Staged Customer Management

127

(24)

Building the Foundation: Customer Management Must Fit the Stage

128

(2)

A Staged Perspective on Customer Management Practices

130

(15)

Customer Complaint Management

145

(2)

Lessons Learned

147

(4)

PART TWO: THE ROUTE MAP TO STAGE III CUSTOMER CARE: THE 12 STEPS TO GET YOU TO YOUR DESTINATION

151

(124)

Your Survival Strategy for the Future: Why the Route Map is Essential

157

(20)

Using the Route Map: Perspectives on Strategic Customer Care

157

(3)

How to Overcome Common Reasons for Failure

160

(5)

A Fork in the Road Ahead---Which Path Will You Choose?

165

(9)

Lessons Learned

174

(3)

Bringing the Process to Life: The importance of Alignment

177

(36)

Using the Route Map: Aligning People and Process Steps

177

(5)

Step 1: Management Alignment and Mobilization

182

(5)

Step 2: Readiness Assessment: Is Everyone Ready for Change?

187

(5)

Step 7: Management Call to Action---Using Your Results to Build Your Team

192

(7)

Step 10: Team Training

199

(11)

Lessons Learned

210

(3)

How to Support the Process: The Tools and Practices Needed for Information Gathering

213

(24)

Using the Route Map: Acquiring New Skills and Embracing New Technology

213

(2)

Revisting the Importance of Customer Loyalty and Retention

215

(4)

Step 3: Customer Segmentation

219

(3)

Step 4: Customer Profiling

222

(8)

Step 6: Gap Analysis

230

(4)

Lessons Learned

234

(3)

Action Planning: Building the Plan with Tools and Practices in Place

237

(30)

Using the Route Map: Time for Action

237

(1)

Step 8: Building Your Strategic Action Plan

238

(12)

Step 9: Customer Alignment

250

(4)

Step 11: Developing an Implementation Plan

254

(6)

Step 12: Performance Monitoring and Adjustment

260

(5)

Lessons Learned

265

(2)

Destination: Success

267

(8)

Part I: Building the Foundation

267

(3)

Part II: Using the Route Map

270

(5)

Appendix A: Syndicated Research on Customer Satisfaction

275

(2)

Appendix B: The Project Charter

277

(4)

Appendix C: Sample Readiness Assessment

281

(4)

Appendix D: The Customer Profile

285

(6)

Reccommended Reading List

291

(7)

Index

298

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Strategic Customer Care An Evolutionary Approach to Increasing Customer Value and Profitability

Summary

Author Biography

Table of Contents

Supplemental Materials